SEC takes aim at proxy advisers for shareholders

Commission urges proxy advisers to take more steps to disclose how they craft their shareholder recommendations

By

Andrew Ackerman

Updated: August 22, 2019 6:47 am GMT

Public companies notched a victory in a longstanding fight to curb the impact of consultants who influence shareholder votes on topics such as executive pay.

A divided Securities and Exchange Commission voted 3-2 Wednesday to urge the consulting firms — known as proxy advisers — to take more steps to disclose how they craft their shareholder recommendations, issuing a broad warning for proxy advisers that convey incorrect information.